Published: Sun, January 26, 2020
Electronics | By Kelly Massey

Broadcom signs agreements to supply wireless chips to Apple

Broadcom signs agreements to supply wireless chips to Apple

The new agreements are in addition to a different deal Broadcom made with Apple past year. Broadcom has also supplied other components to Apple, including chips for connecting devices to Wi-Fi networks.

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Computer chipmaker Broadcom Inc. said Thursday it has inked two separate, multiyear deals with the iPhone maker Apple Inc.to provide it with high-performance wireless components and modules. Broadcom estimates that, based on past experience, and subject to the its ability to satisfy its applicable contractual obligations, the 2020 deal and the 2019 deal could, collectively, generate aggregate total future revenue of approximately United States dollars 15 billion. That's in addition to another similar agreement that Broadcom reached with Apple in 2019. Broadcom expects to earn $15 billion from the tech giant as a result of the agreements. However, the Wall Street Journal reported in December that the company was investigating the possible sale of a wireless chip division focusing on "radio-frequency" chips that supply Apple. Broadcom is one of Apple's key American component suppliers, according to an SEC filing a year ago. The analysis also found a radio-frequency (RF) front-end chip with branding from Avago, the semiconductor company that acquired Broadcom in 2015.

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